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Small business immediate asset write-off extended

The federal government yesterday announced proposed enhancements to the instant asset write-off, extending the period of application by a further 12 months to 30th June 2020, and the level at which it cuts out from $20,000 to $25,000.

This scheme allows businesses with less than $10 million in turnover to write-off 100% of a purchased asset worth less than the set level (proposed at $25,000) in their tax return, in the year the asset is purchased.

The government plans to legislate the change when Parliament resumes on 12 February, so best to wait until it is law before relying on the announcement.